– ETH price failed to gain momentum above $232 and declined recently against the US Dollar.
– This week’s followed important bullish trend line was breached with support at $225 on the hourly chart of ETH/USD (data feed via Kraken).
– The pair is currently in a bearish zone and it could continue to move down towards $207 or $203.
Ethereum price is grinding lower against the US Dollar and bitcoin. ETH/USD may well accelerate losses towards $203 if sellers remain in control.
Ethereum Price Analysis
There was a strong hurdle faced near the $232-234 zone by ETH price against the US Dollar. The ETH/USD pair failed to gain momentum, started a downside move, and broke the $228 and $225 support levels. During the decline, there was a break below the 50% Fib retracement level of the last major upward move from the $213 low to $239 high.
More importantly, this week’s followed important bullish trend line was breached with support at $225 on the hourly chart of ETH/USD. The pair is now trading well below the $225 support and the 100 hourly simple moving average. It seems like the price may continue to move down towards the $213 low in the near term. If sellers clear the $213 low, there could be more losses towards the $207 level. It represents the 1.236 Fib extension level of the last major upward move from the $213 low to $239 high. Further below this, the price may perhaps test the last major swing low at $203.
Looking at the chart, ETH price is clearly under pressure below $225 and the 100 hourly SMA. If there is an upside correction, the broken supports at $224 and $225 are likely to act as hurdles. Above these, the price could retest the $232 resistance.
Hourly MACD – The MACD is gaining traction in the bearish zone.
Hourly RSI – The RSI is now well below the 30 level with a negative angle.
Major Support Level – $207
Major Resistance Level – $230